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Rheinmetall Expands Its Role in the German Defense Industry

At the "Economic Factor Defense" conference hosted by business magazine "Handelsblatt," Rheinmetall's CEO, Armin Papperger, emphasised the company's central role in the current boom of the German defense industry.

Rheinmetall, a prominent player in the German arms industry, has been a topic of interest for "Handelsblatt." The company highlighted its extensive network of around 22,000 small and medium-sized suppliers in Germany, many of whom are financially supported by Rheinmetall. These suppliers, according to Papperger, lack the reserves of large corporations.

The company's commitment to its suppliers extends to strategic inventory management. Rheinmetall takes on the risk of stockpiling materials for five years, such as cotton for gunpowder, despite the economic risks involved.

Rheinmetall's production capacity has seen a significant increase, with the recently opened factory in Unterlüß, Lower Saxony, capable of producing 350,000 artillery rounds per year. This factory is a testament to the company's growth and its importance to the German defense industry.

Papperger advocated for future defense orders to be handled through fixed orders instead of framework agreements. This, he believes, would provide more planning security and commitment for the industry.

The CEO also highlighted Rheinmetall's relationship with numerous suppliers and industrial partners. The company previously produced around 70,000 artillery shells worldwide per year, a figure that is set to increase with the new plant in Unterluess.

Papperger foresees significant growth potential for the industry and the company. Rheinmetall plans to multiply capacities in some areas by ten, indicating a promising future for the company and the German defense industry.

It is worth noting that Rheinmetall pays trade tax in Düsseldorf, demonstrating its commitment to the German economy. The company's expansion and increased production capacity are undoubtedly beneficial for the country's defense capabilities and its industrial sector.